The study aimed at exploring the relationship between efficiency and profitability of private commercial banks operating in Pakistan. The efficiency represented by technical efficiency has been assessed by non-parametric data envelopment analysis approach while profitability indicated by return on assets has been computed through conventional ratio analysis for period 2009 to 2013. The analysis revealed that technical efficiency declined during the study period and remained at 89%. HMB was identified as the top-performing bank in technical efficiency while MCB remained highly profitable. Banks were then grouped based on TE and ROA. MBL, UBL, DIB, SCB, BAH, HBL and HMB observed as top-performing banks based on TE and ROA. These banks are considered a role model for other inefficient and less profitable banks. Whereas, other banks were grouped as weak, based on below-average ROA and TE scores. These banks can adopt distinct product mix or business strategies to become profitable in future.

The research investigates how credit risk affects Islamic bank profitability in Pakistan while studying the influence of Sharia governance. Islamic banks manage credit risk differently from traditional banks because they follow Shariah principles that base their operations on profit-and-loss sharing while banning riba interest transactions. This research analyzes NPL effects on bank profitability (ROA) by studying five full-fledged Islamic banks from 2014 to 2023 using Multiple regression analysis. The study demonstrates that Sharia governance through Sharia Board Size and frequency of Sharia Board Meetings functions as a key moderator that enhances the link between credit risk and profitability. Such institutions demonstrate better financial performance because their solid governance systems help them convert their risk exposures into prosperity. Research findings demonstrate that larger bank institutions generate lower profitability because they encounter operational inefficiencies and scale-related operational challenges.